SENATE BILL 22-178
BY SENATOR(S) Gonzales, Ginal, Jaquez Lewis, Lee, Moreno,
Smallwood;
also REPRESENTATIVE(S) Valdez A. and Van Winkle, Bird, Hooton,
Lindsay.
C
ONCERNING THE ABILITY FOR CERTAIN MARIJUANA LICENSEES TO CHANGE
THE DESIGNATION OF MARIJUANA FROM MEDICAL TO RETAIL
, AND, IN
CONNECTION THEREWITH
, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 44-10-502, add (9.5)
as follows:
44-10-502. Medical marijuana cultivation facility license - rules
- definitions. (9.5) (a) S
TARTING JANUARY 1, 2023, AFTER OBTAINING
PASSING TEST RESULTS
, A MEDICAL MARIJUANA CULTIVATION FACILITY MAY
TRANSFER MEDICAL MARIJUANA TO A CO
-LOCATED RETAIL MARIJUANA
CULTIVATION FACILITY WITH AT LEAST ONE IDENTICAL CONTROLLING
BENEFICIAL OWNER AND CHANGE THE DESIGNATION OF THE MEDICAL
MARIJUANA TO RETAIL MARIJUANA
. PURSUANT TO SECTION 44-10-602
(13.5)(a),
AFTER THE RETAIL MARIJUANA CULTIVATION FACILITY ENTERS THE
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. DESIGNATION CHANGE INTO THE SEED -TO-SALE TRACKING SYSTEM, THE
MARIJUANA IS RETAIL MARIJU ANA AND IS THE PROPERTY OF THE RETAIL
MARIJUANA CULTIVATION FACILITY
. THE MARIJUANA THAT CHANGED
DESIGNATION PURSUANT TO THIS SUBSECTION
(9.5)(a) MUST NOT BE
TRANSFERRED TO THE ORIGINATING MEDICAL MARIJUANA CULTIVATION
FACILITY OR ANY MEDICAL MARIJUANA LICENSEE
, HAVE ITS DESIGNATION
CHANGED FROM RETAIL MARIJUANA BACK TO MEDICAL MARIJUANA
, OR
OTHERWISE BE TREATED AS MEDICAL MARIJUANA
.
(b) (I) N
OTWITHSTANDING SUBSECTION (9.5)(a) OF THIS SECTION TO
THE CONTRARY
, A MEDICAL MARIJUANA CULTIVATION FACILITY MAY
TRANSFER MEDICAL MARIJUANA TO A RETAIL MARIJUANA CULTIVATION
FACILITY THAT IS NOT CO
-LOCATED WITH THE MEDICAL MARIJUANA
CULTIVATION FACILITY TO CHANGE THE DESIGNATION OF THE MEDICAL
MARIJUANA TO RETAIL MARIJUANA IF
:
(A) T
HE MEDICAL MARIJUANA CULTIVATION FACILITY AND RETAIL
MARIJUANA CULTIVATION FACILITY HAVE AT LEAST ONE IDENTICAL
CONTROLLING BENEFICIAL OWNER
; AND
(B) THE MEDICAL MARIJUANA CULTIVATION FACILITY AND RETAIL
MARIJUANA CULTIVATION FACILITY CANNOT BE CO
-LOCATED BECAUSE THE
LOCAL JURISDICTION PROHIBITS THE OPERATION OF EITHER A MEDICAL
MARIJUANA CULTIVATION FACILITY OR A RETAIL MARIJUANA CULTIVATION
FACILITY
.
(II) P
RIOR TO MAKING A TRANSFER PURSUANT TO THIS SUBSECTION
(9.5)(b), THE MEDICAL MARIJUANA CULTIVATION FACILITY SHALL ENSURE
THAT THE MEDICAL MARIJUANA PASSED ALL TESTS REQUIRED BY THE STATE
LICENSING AUTHORITY IN RULE
.
(c) B
OTH THE MEDICAL MARIJUANA CULTIVATION FACILITY AND THE
RETAIL MARIJUANA CULTIVATION FACILITY SHALL REMAIN AT OR UNDER
THEIR RESPECTIVE REGULATED INVENTORY LIMITS BEFORE AND AFTER THE
TRANSFER IS CONDUCTED PURSUANT TO THIS SUBSECTION
(9.5).
(d) T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL PAY ANY
RETAIL MARIJUANA EXCISE TAX PURSUANT TO SECTION
39-28.8-302. THE
RETAIL MARIJUANA CULTIVATION FACILITY SHALL NOTIFY THE LOCAL
LICENSING AUTHORITY IN THE LOCAL JURISDICTION WHERE THE TRANSFEROR
PAGE 2-SENATE BILL 22-178 AND TRANSFEREE OPERATE AND PAY ANY APPLICABLE EXCISE TAX ON THE
TRANSFERRED RETAIL MARIJUANA
.
(e) P
URSUANT TO THE REQUIREMENTS OF THIS SUBSECTION (9.5), A
MEDICAL MARIJUANA CULTIVATION FACILITY MAY MAKE A VIRTUAL
TRANSFER OF MARIJUANA THAT IS REFLECTED IN THE SEED
-TO-SALE
TRACKING SYSTEM EVEN IF THE MARIJUANA IS NOT PHYSICALLY MOVED OR
TRANSFERRED
.
SECTION 2. In Colorado Revised Statutes, 44-10-602, add (13.5)
as follows:
44-10-602. Retail marijuana cultivation facility license - rules -
definitions. (13.5) (a) S
TARTING JANUARY 1, 2023, AFTER OBTAINING
PASSING TESTING RESULTS
, A RETAIL MARIJUANA CULTIVATION FACILITY
MAY RECEIVE A TRANSFER OF MEDICAL MARIJUANA FROM A CO
-LOCATED
MEDICAL MARIJUANA CULTIVATION FACILITY WITH AT LEAST ONE IDENTICAL
CONTROLLING BENEFICIAL OWNER AND CHANGE THE DESIGNATION OF THE
MEDICAL MARIJUANA TO RETAIL MARIJUANA
. THE RETAIL MARIJUANA
CULTIVATION FACILITY SHALL ENTER THE DESIGNATION CHANGE INTO THE
SEED
-TO-SALE TRACKING SYSTEM AND, AFTER THE CHANGE IS ENTERED INTO
THE SYSTEM
, THE MARIJUANA IS RETAIL MARIJUANA AND IS THE PROPERTY
OF THE RETAIL MARIJUANA CULTIVATION FACILITY
. THE MARIJUANA THAT
CHANGED DESIGNATION PURSUANT TO THIS SUBSECTION
(13.5)(a) MUST NOT
BE TRANSFERRED TO THE ORIGINATING MEDICAL MARIJUANA CULTIVATION
FACILITY OR ANY MEDICAL MARIJUANA LICENSEE
, HAVE ITS DESIGNATION
CHANGED FROM RETAIL MARIJUANA BACK TO MEDICAL MARIJUANA
, OR
OTHERWISE BE TREATED AS MEDICAL MARIJUANA
.
(b) (I) N
OTWITHSTANDING SUBSECTION (13.5)(a) OF THIS SECTION
TO THE CONTRARY
, A RETAIL MARIJUANA CULTIVATION FACILITY MAY
RECEIVE A TRANSFER OF MEDICAL MARIJUANA FROM A MEDICAL MARIJUANA
CULTIVATION FACILITY THAT IS NOT CO
-LOCATED WITH THE RETAIL
MARIJUANA CULTIVATION FACILITY TO CHANGE THE DESIGNATION OF THE
MEDICAL MARIJUANA TO RETAIL MARIJUANA IF
:
(A) T
HE RETAIL MARIJUANA CULTIVATION FACILITY AND MEDICAL
MARIJUANA CULTIVATION FACILITY HAVE AT LEAST ONE IDENTICAL
CONTROLLING BENEFICIAL OWNER
; AND
PAGE 3-SENATE BILL 22-178 (B) THE RETAIL MARIJUANA CULTIVATION FACILITY AND MEDICAL
MARIJUANA CULTIVATION FACILITY CANNOT BE CO
-LOCATED BECAUSE THE
LOCAL JURISDICTION PROHIBITS THE OPERATION OF EITHER A MEDICAL
MARIJUANA CULTIVATION FACILITY OR A RETAIL MARIJUANA CULTIVATION
FACILITY
.
(II) P
RIOR TO RECEIVING A TRANSFER PURSUANT TO THIS
SUBSECTION
(13.5)(b), THE RETAIL MARIJUANA CULTIVATION FACILITY
SHALL ENSURE THAT THE MEDICAL MARIJUANA PASSED ALL TESTS REQUIRED
BY THE STATE LICENSING AUTHORITY IN RULE
.
(c) B
OTH THE RETAIL MARIJUANA CULTIVATION FACILITY AND THE
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL REMAIN AT OR UNDER
THEIR RESPECTIVE REGULATED INVENTORY LIMITS BEFORE AND AFTER THE
TRANSFER IS CONDUCTED PURSUANT TO THIS SUBSECTION
(13.5).
(d) T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL PAY ANY
RETAIL MARIJUANA EXCISE TAX PURSUANT TO SECTION
39-28.8-302. THE
RETAIL MARIJUANA CULTIVATION FACILITY SHALL NOTIFY THE LOCAL
LICENSING AUTHORITY IN THE LOCAL JURISDICTION WHERE THE TRANSFEROR
AND TRANSFEREE OPERATE AND PAY ANY APPLICABLE EXCISE TAX ON THE
TRANSFERRED RETAIL MARIJUANA
.
(e) P
URSUANT TO THE REQUIREMENTS OF THIS SUBSECTION (13.5),
A RETAIL MARIJUANA CULTIVATION FACILITY MAY RECEIVE A VIRTUAL
TRANSFER OF MARIJUANA THAT IS REFLECTED IN THE SEED
-TO-SALE
TRACKING SYSTEM EVEN IF THE MARIJUANA IS NOT PHYSICALLY MOVED OR
TRANSFERRED
.
SECTION 3. Appropriation. For the 2022-23 state fiscal year,
$228,510 is appropriated to the department of revenue for use by the
marijuana enforcement division. This appropriation is from the marijuana
cash fund created in section 44-10-801 (1)(a), C.R.S., and is based on an
assumption that the division will require an additional 2.9 FTE. To
implement this act, the division may use this appropriation for marijuana
enforcement.
SECTION 4. Effective date. This act takes effect July 1, 2022.
SECTION 5. Safety clause. The general assembly hereby finds,
PAGE 4-SENATE BILL 22-178 determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Steve Fenberg Alec Garnett
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 5-SENATE BILL 22-178